How consumers pay for transport
Reforms to fares, fare structures and ticketing should be prioritised. For some time though, many have felt they get poor value for money from public transport. Given the potential impacts of Covid-19 on the economy, the government should cancel the next planned fare increase on the railway due in January 2021, which will be confirmed in August with the announcement of the July inflation rate. Raising rail fares at this stage would be counter-productive to encouraging passengers back and to limiting the cost of people getting into work.
A new approach is needed to fare setting on public transport, which should address future fare rises (or reductions) and how these are calculated. Fares structures should be reviewed. Currently, there are too many confusing options for the different types of tickets and fares, and passengers are not automatically offered the best-value option.
From a passenger’s perspective, having an integrated multi-operator and multi-modal ticketing approach would bring benefits, including simplifying the ticket purchasing process and improving affordability.
Digital ticketing and booking systems for passengers will need to be default for the sector with a move away from paper tickets.
There should be a rapid move to simplified fare structures and account-based ticketing. Multi-modal tickets and zonal fares should be expedited for the cities beyond London as part of more devolved and better integrated transport. Local transport authorities that are devolved responsibility for rail should consider introducing new fares structures with tickets valid across operators, so passengers are not penalised if they need to change trains and from trains to buses.
The government will need to step in to facilitate this and require operators to participate in account-based ticketing schemes and put in place the systems necessary. There will need to be investment in the back-end systems as well as an opening up of data across the transport sector and provision of APIs so that technology firms and operators can provide new retail and transport information products to consumers. Improved integration between modes should also be actively supported, including capital funding from government to support easier physical interchange, data availability for journey planning and the widespread adoption of multi-modal ticketing.
Inflexible season tickets have left those who do not need to commute every day being faced with buying either a full-time season ticket they will not use fully and cannot transfer, or expensive daily ‘anytime’ tickets that give no discount for frequent or regular travel. With greater potential for working patterns changing post-Covid and greater likelihood of working from home at least part of the week creating a larger cohort of part-time commuters, there should be a new range of capped, flexible season ticket products, which better address this need.
The government should review the model of concessionary fares and how these are funded. It should support specific demographics that would benefit from concessionary fares to improve access to education and employment, producing a return for the economy by enabling those least able to afford it to travel. It will be vital to keep fares on public transport low, and to increase the levels of patronage.